Economics And Economics On Economics Essay

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When we talk about economics we must first defined the word. Economics is a social science that studies human behavior and how to allocate our limited (scares) resources, efficiently and effectively to meet our unlimited human wants. Now as we dive deeper in to the field of economics we realized that there are two separate categories that the study of economics breaks off into. The first is macroeconomics, macroeconomics is the study of the whole picture when it comes to economics. Macroeconomics will ask questions about how respected countries economies will work and how and why they make certain decisions. The other category, which this class is about, is Microeconomics. Microeconomics is the study of the individual. It is the study of individual firms and households and how they make decisions that affect themselves personally. Another pillar of Microeconomics is the study of wants. Wants and needs are to totally different things that each care a different respected weight in economics. Wants are things that can be done without and still sustain life. Needs are those items that essential to life i.e.: water, food, and shelter. The biggest difference is that human wants are unlimited and can’t all be satisfied. Which leads us to another major point about economics, economics is about choice. In economics we will ask questions like: what to produce, what resources to use, and how much to produce. In addition, when we deal with choices we must deal with the marginal
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